Zhihu Inc. (NYSE:ZH) reported an EPS of -$0.01, beating the estimated EPS of -$0.03.
The company posted a revenue of approximately $100.5 million.
Zhihu’s gross margin improved to 61.8%, and the net loss was significantly reduced to $1.4 million.
Zhihu Inc. (NYSE:ZH), a leading online content community in China, known for its question-and-answer format similar to Quora, provides a platform for users to share knowledge and insights across various topics. Despite its popularity, Zhihu faces competition from other Chinese tech giants like Baidu and Tencent, which also offer content-sharing platforms.
On May 27, 2025, Zhihu reported its earnings, revealing an EPS of -$0.01, surpassing the estimated EPS of -$0.03. This indicates that the company performed better than expected in terms of earnings per share. However, the revenue of approximately $100.5 million fell short of the estimates, highlighting a significant gap in expected versus actual revenue.
During the Q1 2025 earnings call, key figures such as Yolanda Liu, Wang Han, and Zhou Yuan discussed the financial results. Analysts from major financial institutions attended, emphasizing the importance of the event. The call was conducted in a listen-only mode, allowing participants to focus on the strategic insights shared by the leadership.
Zhihu’s financial results for Q1 2025 showed a revenue of approximately $100.6 million, a decrease from $132 million in the same period of 2024. Despite this drop, the gross margin improved to 61.8% from 56.6% the previous year. The net loss was reduced to $1.4 million, a 93.9% improvement from 2024, and the company achieved an adjusted net income of $1 million.
The company has a negative P/E ratio of approximately -15.30, indicating it is not currently profitable. However, the low debt-to-equity ratio of 0.005 suggests minimal reliance on debt. The strong current ratio of 3.60 indicates good short-term financial health, showing Zhihu’s ability to cover its current liabilities with its current assets.